Suppose Australia imposes a 30% tax on corporate income. Hungary's maximum corporate income tax rate is 19%.

Question:

Suppose Australia imposes a 30% tax on corporate income. Hungary's maximum corporate income tax rate is 19%. If pre-tax required returns in Hungary are 10%, what are pre-tax required returns on similar assets in Australia for the law of one price to hold?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: